Imported ferrous scrap demand in India remains stable as large mills bagged export orders. Importers are expected to resume active trades next week on strong global cues and limited supply. High containerised offers encouraged bulk scrap importers in India to resume inquiries after a long gap.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, spiked to $493/mt cfr Nhava Sheva up $16/mt from Wednesday, which is near all-time highs scaled in 2008. Offers for HMS #1 from Dubai-origin spiked to $500-510/mt cfr Nhava Sheva on tight supply and strong global cues. Some mills have bought UAE-origin #1 HMS above $500/mt cfr Chennai.
Offers for containerized shredded continue to trend up scaling record highs. The Davis Index for containerized shredded, Thursday, settled at $518.93/mt cfr Nhava Sheva, up by $10/mt. Asking prices on Thursday rose to $520-525/mt cfr Nhava Sheva.
In the bulk market, offers for HMS 1&2 (80:20) were above $540/mt cfr Kandla. Amid a sharp rise in containerised prices, mills in India’s East coast could opt for bulk bookings in the coming days.
The index for US-origin HMS 1&2 (80:20), Thursday, settled at $500.71/mt cfr Nhava Sheva, up by $22.5/mt from Wednesday. Offers for the US and UK origin HMS 1&2 (80:20) rose sharply as non-availability of containers and strong domestic demand forcing exporters to focus on domestic sales. Offers rose to $500-505/mt cfr Nhava Sheva, however, buyers turned cautious and resisted high prices for long transit scrap.
On Thursday, melting scrap offers in Alang increased by Rs100/mt to Rs39,600/mt ex-yards. Dismantling activities at some yards have resumed with improved oxygen availability. Yet, daily scrap generation through breaking operations remain slow.
Rebar prices in Mumbai showed a gradual uptick to scale Rs51,300/mt ex-works up Rs200/mt from a prior day on improved demand, while ingot trades in the Mandi Gobindgarh slowed at stable prices of Rs46,600-46,700/mt ex-works.
In the export market, Chinese demand continues to stay strong for billet imports. On Thursday, trades for Southeast Asian billets heard above $800/mt cfr China. Malaysian billet of around 30,000mt reportedly sold at $800/mt cfr China. These levels are up over $100/mt after trades resumed post-Labour Day holidays.
Indian mills are eyeing export orders above $700/mt fob India. A leading billet exporter claimed that Indian billet prices have remained lowest across the global. Mills are targeting exports amid weak domestic demand and prices are likely to rise further. However, some issues in the loading and discharging of materials at Jiangyin port may hamper export sentiments for Indian billets, according to traders.
In China, for 62pc Fe, spot iron ore prices rose to $233.1/mt cfr China on Wednesday, up $4.2/mt from a day prior. Successive price uptick supported sentiments pushing steel prices further up.
Subcontinent
The daily Davis Index for containerized shredded, Thursday, settled at $523.78/mt cfr Indian subcontinent, up by $11.34/mt; while that for containerized US-origin HMS 1&2 (80:20) rose to $505/mt cfr Indian subcontinent, up by $19.3/mt from Wednesday.
($1=Rs73.60)